Atar Capital, the Los Angeles private equity firm founded by Cyrus Nikou in 2016, has been named in lawsuits on two fronts: a California wrongful termination and whistleblower retaliation suit brought by the CEO’s former executive assistant, and wrongful dismissal actions in British Columbia filed by former employees of Atar-owned Douglas Lighting Controls, who also accused the parent firm of stripping assets from the subsidiary before it collapsed. A separate Atar portfolio company, Metco Landscape, laid off hundreds of workers and entered receivership in Colorado in 2022, though no related lawsuits appeared in public reporting.
The Wrongful Termination Suit in Los Angeles
Olivia Villa, who worked as executive assistant to Nikou, sued Atar Capital in Los Angeles Superior Court in late August 2022. She alleged she was fired in October 2021 after raising concerns about the absence of COVID-19 safety protocols at the office and asking to work from home while recovering from reconstructive surgery.1Spectrum News. Former Atar CEO’s Assistant Alleges Her Firing Was Tied to Pandemic Concerns
The complaint brought claims for wrongful termination, whistleblower retaliation, violations of the California Fair Employment and Housing Act and the California Family Rights Act, and Labor Code violations for failure to provide meal and rest breaks. Villa alleged management dismissed her safety concerns and called her a “worry wart.”1Spectrum News. Former Atar CEO’s Assistant Alleges Her Firing Was Tied to Pandemic Concerns
She also described a job that reached deep into her boss’s private life. According to the suit, Nikou directed her to buy an ammunition clip for his handgun, handle the registration of a personal Ferrari, find a personal chef, obtain Las Vegas Raiders tickets, track his family’s Nevada residency status, and locate a senior living residence for a relative. Villa said she was on call at all hours and used her own car and phone for work without reimbursement. She sought unspecified compensatory and punitive damages.1Spectrum News. Former Atar CEO’s Assistant Alleges Her Firing Was Tied to Pandemic Concerns Available reporting does not indicate a public resolution.
The Douglas Lighting Controls Suits in British Columbia
Douglas Lighting Controls, a Canadian subsidiary owned by Atar Capital, shut down abruptly on March 22, 2023 and laid off its workforce. Two long-tenured employees sued shortly after.2Inside Lighting. Wrongful Termination Lawsuits Hit Douglas Lighting Controls
Karen Veinot, a senior production design coordinator with 30 years at the company and an annual salary of $100,000 CAD, sought 24 months of pay. Pedro Cabañas, a director of information technology with 12 years of service and a $120,000 CAD salary, sought 18 months. Both were represented by Vancouver firm Samfiru Tamarkin LLP.2Inside Lighting. Wrongful Termination Lawsuits Hit Douglas Lighting Controls
The suits went beyond wrongful dismissal. Both plaintiffs alleged “fraudulent conveyance” and “fraudulent preference,” claiming Douglas Lighting Controls’ assets were being transferred to Atar Capital and that sale proceeds were being routed back to the parent instead of paying employees and other creditors. The complaints also named an unidentified “ABC Corporation” as a defendant, a placeholder that could let the plaintiffs pursue any future buyer of the subsidiary’s assets.2Inside Lighting. Wrongful Termination Lawsuits Hit Douglas Lighting Controls
Atar’s Response and the Bankruptcy
Atar Capital contested the Cabañas case on jurisdictional grounds and denied being an owner or shareholder of Douglas Lighting Controls. It also denied being a creditor of the company and rejected any responsibility for the plaintiff’s employment or damages, calling the allegations “baseless and unfounded” and asking for dismissal with special costs.3Inside Lighting. Universal Douglas Abrupt Shutdown Seemingly Planned 2 Months
Douglas Lighting Controls filed for bankruptcy protection in June 2023. Reporting at the time noted that the bankruptcy proceedings could effectively shield both Douglas Lighting and Atar Capital from the pending lawsuits.3Inside Lighting. Universal Douglas Abrupt Shutdown Seemingly Planned 2 Months
The Metco Landscape Collapse in Colorado
Atar Capital acquired the assets of Metco Landscape, a Colorado landscaping company, at the end of 2021. By mid-2022 the business was failing. On July 28, 2022, Metco terminated 343 workers across its Denver-area offices in Aurora, Arvada, and Englewood, plus another 36 in El Paso County, for a total of 379 layoffs.4The Denver Post. Layoffs Metco Landscape Aurora5Lawn and Landscape. Metco Landscape in Receivership Lays Off Hundreds
Workers were told on the day their jobs ended. Metco filed a Worker Adjustment and Retraining Notification Act notice with the Colorado Department of Labor and Employment, citing “unforeseen business circumstances” to explain the lack of the standard 60-day notice. CEO Paul Tudor attributed the collapse to losses caused by a competitor’s conduct, unrecoverable accounts, and reduced housing starts.4The Denver Post. Layoffs Metco Landscape Aurora
By August 2022, Metco was in receivership in Boulder County District Court, with assets being sold to pay creditors. Atar Capital said it had made a “significant infusion of capital” earlier that year but the company could not overcome higher interest rates, inflation, and the housing downturn. The firm said a court-appointed receiver had taken over all company decisions.6Denver Gazette. Aurora’s Metco Landscape to Lay Off Hundreds of Workers No lawsuits tied to the Metco layoffs appeared in the available reporting.